Explain why environmentally minded firms in a competitive industry will find it difficult to take environmental action
Firms can survive in competition only if they operate at minimum average cost. A firm choosing a more expensive production process to reduce pollution will not be able to compete with a firm ignoring externalities. The environmentally conscious firm will lose money in the long run.
Economics
You might also like to view...
According to Figure 15.5, the liquidity trap occurs at an interest rate of
A. 8 percent only. B. 2 percent, 4 percent, 6 percent, and 8 percent. C. 2 percent and 4 percent. D. 2 percent only.
Economics
As a consequence of the condition of scarcity:
A. there is never enough of anything. B. production has to be centrally planned. C. individuals and communities have to make choices from among alternatives. D. things that are plentiful have relatively high prices.
Economics